Will JOHNSON & JOHNSON Break Out? A Technical Analysis Perspective.

JOHNSON & JOHNSON (NYSE:JNJ) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:JNJ.

What is the technical picture of NYSE:JNJ telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 8 out of 10 to JNJ. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, JNJ is only an average performer.

• The long and short term trends are both positive. This is looking good!
• JNJ is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• When compared to the yearly performance of all other stocks, JNJ outperforms 55% of them, which is more or less in line with the market.
• JNJ is part of the Pharmaceuticals industry. There are 193 other stocks in this industry, JNJ did better than 65% of them.
• In the last month JNJ has a been trading in a tight range between 156.44 and 165.78.

Check the latest full technical report of JNJ for a complete technical analysis.

How do we evaluate the setup for NYSE:JNJ?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:JNJ is 8:

Besides having an excellent technical rating, JNJ also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 164.24. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 162.74, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.